Urban Institute Fires Back at OIG Down Payment Assistance Report

Earlier this month, Office of Inspector General (OIG) for the Department of Housing and Urban Development (HUD) submitted a report to the agency claiming it had ” Failed to adequately oversee FHA-Insured loans with Borrower Financed Downpayment Assistance.” Now the Urban Institute (UI) has responded, calling the OIG criticism “perplexing.” Apparently, this is not the first-time OIG has issued a negative report on HUDs oversight nor the first pushback from UI. The OIG questioned loans that are given to clients of state and local housing finance agencies (HFA). The HFAs, considered to be government agencies, provide homeownership assistance, such grants (gifts) or secondary loans covering the usual minimum 3.5% FHA downpayment and borrower-paid closing costs. The loans are repaid through higher…(read more)